Question 1

In investigating a complaint about deceptive advertising, the role of the NAD is to collect information and evaluate data concerning the complaint to determine whether the advertiser's claim is properly substantiated.

Accepted Answer

The National Advertising Division (NAD) of the Better Business Bureau (BBB) is responsible for investigating complaints about deceptive advertising and collecting information to evaluate whether the advertiser's claim is properly substantiated.

Question 2

If the NARB rules against an advertiser, it will issue an order that will be very similar to a:

Accepted Answer

The answer of If the NARB rules against an advertiser,...

Question 3

The NAD of the Council of Better Business Bureaus becomes involved in all of the following except:

Accepted Answer

The NAD of the Council of Better Business Bureaus does not typically get involved in cases of mail fraud. It primarily focuses on advertising issues and aims to promote fair competition and truthful advertising practices.

Question 4

Which industry agency monitors all forms of advertising directed toward children?

Accepted Answer

The Children's Advertising Review Unit (CARU) monitors all forms of advertising directed toward children. The National Advertising Division (NAD) and the Council of Better Business Bureaus (BBB) also play a role in self-regulation of advertising but do not specifically focus on children. The Federal Trade Commission (FTC) has the power to investigate and take action against advertisers who violate advertising standards, including those aimed at children, but is not solely dedicated to this issue.

Question 5

An appeal of a decision by the NAD goes to the:

Accepted Answer

An appeal of a decision by the NAD goes to the National Advertising Review Board (NARB). The NARB is an appellate body that reviews decisions made by the NAD at the request of either party in the case. The NARB is a self-regulatory program administered by the Council of Better Business Bureaus (CBBB) and is not an official government agency. Therefore, choices A, B, and D are incorrect.

Question 6

Which agency monitors websites that involve children younger than 13 years of age?

Accepted Answer

The Children's Advertising Review Unit (CARU) is an agency that monitors websites that involve children younger than 13 years of age. They primarily focus on advertising and marketing practices geared towards children, ensuring they are ethical and appropriate. The National Advertising Review Board (NARB), National Advertising Division (NAD), and Federal Communications Commission (FCC) also play important roles in advertising regulation, but they do not specifically monitor websites involving young children.

Question 7

A complaint filed with the National Advertising Division of the Council of Better Business Bureaus regarding an unsubstantiated advertising claim would be dismissed because substantiation is not a criterion.

Accepted Answer

The National Advertising Division of the Council of Better Business Bureaus is responsible for investigating and resolving complaints regarding false or misleading advertising claims. Substantiation of advertising claims is a key criterion in determining the validity of the claim, and complaints regarding unsubstantiated advertising claims can lead to corrective advertising or other remedial measures. Therefore, a complaint filed with the National Advertising Division regarding an unsubstantiated advertising claim would not be dismissed because substantiation is a criterion.

Question 8

Chase files a complaint with his local Better Business Bureau about an advertisement he feels is misleading and deceptive. The BBB would:

Accepted Answer

The National Advertising Division (NAD) is a self-regulatory arm of the advertising industry that investigates and resolves complaints about advertising. The BBB refers complaints about advertising to the NAD for review and resolution.

Question 9

If the National Advertising Division finds an advertisement has not been properly substantiated, the NAD normally will:

Accepted Answer

If the National Advertising Division (NAD) finds that an advertisement has not been properly substantiated, their normal course of action is to ask the advertiser to modify the ad or discontinue using the ad. This is called a corrective advertising recommendation. The NAD does not have the power to issue consent or cease and desist orders, and they may refer the case to the FTC only in exceptionally serious cases where legal action may be warranted.

Question 10

If Megan wants to know if people have complained about a particular health club being unsafe or unclean, she should contact the:

Accepted Answer

The Better Business Bureau is an organization that deals with consumer complaints against businesses. They provide information on businesses and can inform Megan if there have been any complaints against the health club in question. The other options do not deal specifically with consumer complaints or health club safety and cleanliness.

Question 11

The advantages of using industry-based agencies to resolve advertising complaints rather than governmental agencies, such as the FTC, include all of the following except:

Accepted Answer

Industry-based agencies for resolving advertising complaints typically do not have judges; instead, they use industry experts or panels. Governmental agencies like the FTC may involve legal proceedings where judges are required.

Question 12

The Council of Better Business Bureaus is an industry regulatory resource that is available to consumers, but not businesses. Businesses must use the FTC to file complaints.

Accepted Answer

The Council of Better Business Bureaus is available to both consumers and businesses as a resource for industry regulation and dispute resolution. However, businesses can also file complaints with the FTC for certain issues related to unfair or deceptive practices.

Question 13

The most common and well-known advertising and marketing industry regulatory agencies are all part of the FTC.

Accepted Answer

While the Federal Trade Commission (FTC) plays a significant role in regulating advertising and marketing practices in the United States, there are also other independent agencies and industry self-regulatory bodies involved in the oversight of advertising standards, such as the Better Business Bureau (BBB), the National Advertising Division (NAD) of the BBB National Programs, and the Advertising Self-Regulatory Council (ASRC).

Question 14

If a business files a complaint with the NAD of the Council of Better Business Bureaus claiming that one of its competitors has unfairly and deceptively depicted the business in an ad, the NAD will:

Accepted Answer

The National Advertising Division (NAD) of the Council of Better Business Bureaus collects information and evaluates data concerning the complaint to determine if the advertiser's claims can be substantiated. They do not have the authority to issue cease and desist orders or investigate violations of the FTC Act. If the NAD finds that the ad is deceptive and misleading, they may recommend that the advertiser modify or discontinue the ad, but ultimately it is up to the advertiser to comply. The NAD may refer cases to the Federal Trade Commission (FTC), but only if the advertiser refuses to participate in the self-regulatory process or if the case involves a matter of public interest that requires further action.

Question 15

If a case is appealed from the National Advertising Review Board, it would go to the:

Accepted Answer

The National Advertising Review Board (NARB) is a self-regulatory body for the advertising industry and handles appeals from decisions made by the National Advertising Division (NAD). If a case is appealed from the NARB, it would go to the Federal Trade Commission (FTC), which has the authority to take enforcement action against deceptive or unfair advertising practices.

Question 16

The NARB of the Council of Better Business Bureau is composed of:

Accepted Answer

The National Advertising Review Board (NARB) of the Council of Better Business Bureaus is composed of advertising professionals and civic individuals, reflecting a mix of industry expertise and public representation.

Question 17

If the NARB rules against an advertiser, it will:

Accepted Answer

The answer of If the NARB rules against an advertiser,...

Question 18

If Isabelle contacted a local Better Business Bureau about a particular landscaping service, she would receive a:

Accepted Answer

The answer of If Isabelle contacted a local Better Business...

Question 19

What is a trade regulation?

Accepted Answer

The answer of What is a trade regulation?...

Question 20

In addition to handling complaints about advertising to children, which agency also prescreens ads directed to children?

Accepted Answer

The Children's Advertising Review Unit is the agency that handles complaints about advertising to children, as well as prescreens ads before they are directed to children. The Advertising Self-Regulatory Council and National Advertising Division are both parts of the Better Business Bureau that oversee advertising practices in general, but do not specifically focus on children's advertising. The Federal Communications Commission regulates broadcasting, but does not have a specific role in regulating advertising to children.

Quiz 14: Regulations and Ethical Concerns

In investigating a complaint about deceptive advertising, the role of the NAD is to collect information and evaluate data concerning the complaint to determine whether the advertiser's claim is properly substantiated.

If the NARB rules against an advertiser, it will issue an order that will be very similar to a:

The NAD of the Council of Better Business Bureaus becomes involved in all of the following except:

Which industry agency monitors all forms of advertising directed toward children?

An appeal of a decision by the NAD goes to the:

Which agency monitors websites that involve children younger than 13 years of age?

A complaint filed with the National Advertising Division of the Council of Better Business Bureaus regarding an unsubstantiated advertising claim would be dismissed because substantiation is not a criterion.

Chase files a complaint with his local Better Business Bureau about an advertisement he feels is misleading and deceptive. The BBB would:

If the National Advertising Division finds an advertisement has not been properly substantiated, the NAD normally will:

If Megan wants to know if people have complained about a particular health club being unsafe or unclean, she should contact the:

The advantages of using industry-based agencies to resolve advertising complaints rather than governmental agencies, such as the FTC, include all of the following except:

The Council of Better Business Bureaus is an industry regulatory resource that is available to consumers, but not businesses. Businesses must use the FTC to file complaints.

The most common and well-known advertising and marketing industry regulatory agencies are all part of the FTC.

If a business files a complaint with the NAD of the Council of Better Business Bureaus claiming that one of its competitors has unfairly and deceptively depicted the business in an ad, the NAD will:

If a case is appealed from the National Advertising Review Board, it would go to the:

The NARB of the Council of Better Business Bureau is composed of:

If the NARB rules against an advertiser, it will:

If Isabelle contacted a local Better Business Bureau about a particular landscaping service, she would receive a:

What is a trade regulation?

In addition to handling complaints about advertising to children, which agency also prescreens ads directed to children?